TEST BANK
Accounting for Decision Making and Control
Jerold Zimmerman
10th Edition
PR
O
FD
O
C
,Table of Contents
1. Introduction
2. The Nature of Costs
3. Opportunity Cost of Capital and Capital Budgeting
4. Organizational Architecture
5. Responsibility Accounting and Transfer Pricing
6. Budgeting
7. Cost Allocation: Theory
8. Cost Allocation: Practices
9. Absorption Cost Systems
10.Criticisms of Absorption Cost Systems: Incentive to Overproduce
PR
11.Criticisms of Absorption Cost Systems: Inaccurate Product Costs
12.Standard Costs: Direct Labor and Materials
O
FD
O
C
, Chapter 01 Test Bank – Static Key
(ANSWERS AT THE END OF EVERY CHAPTER)
Multiple Choice Questions
1. The firm's information system:
A. is always a single integrated system
B. includes only financial information
C. may include other information such as customer satisfaction surveys, in addition to financial information
D. is less important as a firm grows in size
E. none of the above
The firm's information system includes many kinds of financial and non-financial information.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
PR
AICPA: BB Industry
AICPA: FN Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Managerial Accounting: Decision Making and Control
2. Identify all the correct statements:
O
A. Managers naturally seek to maximize shareholders' wealth
B. Managers act in their own interests, and so there is no way to align their interests with those of the owners
C. To motivate managers in non-profit firms, no employee incentives are needed
FD
D. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that
increases the firm's profits
E. none of the above
To minimize conflicts between the economic interests of managers and owners, the owners need both systems to monitor the
manager's performance and systems of rewards or incentives.
O
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Industry
C
AICPA: FN Decision Making
AICPA: FN Risk Analysis
Blooms: Remember
Difficulty: 1 Easy
Topic: Management Accountant's Role in the Organization
Topic: Managerial Accounting: Decision Making and Control
, 3. An internal accounting system should:
A. provide information to enable costs to be minimized
B. provide financial accounting data for external reporting purposes
C. provide management accounting information for decision-making
D. provide data for tax purposes
E. all of the above
A well designed internal accounting system should provide data for external purposes, such as financial reporting and tax, as
well as internal purposes such as cost control, assessing performance and determining rewards. It is economically inefficient to
maintain multiple accounting systems.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Topic: Design and Use of Cost Systems
PR
4. Economic Darwinism:
A. explains why firms persist in inefficient behavior
B. explains why some inefficient accounting practices persist
C. explains why marmots eat bears
O
D. explains why bears eat marmots
E. none of the above
Inefficient accounting systems may continue to exist either because they have proved better than other systems or because better
FD
systems have not been yet discovered.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Marketing
AICPA: FN Risk Analysis
O
Blooms: Remember
Difficulty: 1 Easy
Topic: Marmots and Grizzly Bears
C
Accounting for Decision Making and Control
Jerold Zimmerman
10th Edition
PR
O
FD
O
C
,Table of Contents
1. Introduction
2. The Nature of Costs
3. Opportunity Cost of Capital and Capital Budgeting
4. Organizational Architecture
5. Responsibility Accounting and Transfer Pricing
6. Budgeting
7. Cost Allocation: Theory
8. Cost Allocation: Practices
9. Absorption Cost Systems
10.Criticisms of Absorption Cost Systems: Incentive to Overproduce
PR
11.Criticisms of Absorption Cost Systems: Inaccurate Product Costs
12.Standard Costs: Direct Labor and Materials
O
FD
O
C
, Chapter 01 Test Bank – Static Key
(ANSWERS AT THE END OF EVERY CHAPTER)
Multiple Choice Questions
1. The firm's information system:
A. is always a single integrated system
B. includes only financial information
C. may include other information such as customer satisfaction surveys, in addition to financial information
D. is less important as a firm grows in size
E. none of the above
The firm's information system includes many kinds of financial and non-financial information.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
PR
AICPA: BB Industry
AICPA: FN Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Managerial Accounting: Decision Making and Control
2. Identify all the correct statements:
O
A. Managers naturally seek to maximize shareholders' wealth
B. Managers act in their own interests, and so there is no way to align their interests with those of the owners
C. To motivate managers in non-profit firms, no employee incentives are needed
FD
D. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that
increases the firm's profits
E. none of the above
To minimize conflicts between the economic interests of managers and owners, the owners need both systems to monitor the
manager's performance and systems of rewards or incentives.
O
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Industry
C
AICPA: FN Decision Making
AICPA: FN Risk Analysis
Blooms: Remember
Difficulty: 1 Easy
Topic: Management Accountant's Role in the Organization
Topic: Managerial Accounting: Decision Making and Control
, 3. An internal accounting system should:
A. provide information to enable costs to be minimized
B. provide financial accounting data for external reporting purposes
C. provide management accounting information for decision-making
D. provide data for tax purposes
E. all of the above
A well designed internal accounting system should provide data for external purposes, such as financial reporting and tax, as
well as internal purposes such as cost control, assessing performance and determining rewards. It is economically inefficient to
maintain multiple accounting systems.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Topic: Design and Use of Cost Systems
PR
4. Economic Darwinism:
A. explains why firms persist in inefficient behavior
B. explains why some inefficient accounting practices persist
C. explains why marmots eat bears
O
D. explains why bears eat marmots
E. none of the above
Inefficient accounting systems may continue to exist either because they have proved better than other systems or because better
FD
systems have not been yet discovered.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Marketing
AICPA: FN Risk Analysis
O
Blooms: Remember
Difficulty: 1 Easy
Topic: Marmots and Grizzly Bears
C
